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A payment plan agreement is established between a debtor and a creditor outlining the terms for repaying a debt. These agreements are commonly used for expensive items or services, allowing the buyer to manage costs through incremental payments while potentially enabling the seller to earn more through interest charges. Payment plans can alleviate financial burdens by avoiding large upfront costs. They are beneficial for both parties: the buyer gets immediate access to the desired item or service, and the seller can enhance revenue. The discussion includes popular items and services for payment plans and offers guidance on finding free agreement templates.